The decision also affects how SBCERA must calculate retirement benefits for some active and deferred members who may retire now and into the future. Supreme Court Decision in Alameda Case. The recalculation will result in a reduced benefit going forward. If you are a retiree and you are part of the group affected by this decision, SBCERA will contact you directly by mail with more information and direct contact information to your respective Retirement Specialist.
It means two things:. Importantly, if you are a retiree and your compensation earnable used to calculate your FAC period did not include any of these pay items, you will not be affected by this decision.
The following section provides more information on these refunds. If you are an active or deferred member or if you retired on or after July 30, , the contributions you may have made on either the Alameda or PEPRA excluded items will be handled differently, depending on the type of the excluded item. Resolution outlines the approach for the administration of these corrections. Other common items of compensation, service time and benefits are not at issue in the Alameda caseβincluding base pay, vacation, annual leave, holiday pay, and service purchases.
In Alameda the California Supreme Court addressed two issues. First, the court addressed whether retirement systems were prohibited by prior settlement agreements from implementing statutory changes to retirement systems.
Second, the court addressed the constitutionality of legislative changes to the retirement law that excluded certain pay items from compensation earnable for legacy members of the retirement systems. PEPRA mostly affected people who were hired after the effective date. Some parts of PEPRA, however, affect retirement system members who were hired prior to the effective date. PEPRA changed the definition of compensation earnable for legacy members.
